The SEC’s regulation Best Interest Rule appears to have backfired badly. A darling of the industry, in most senses, the rule is so convoluted and lacking in specificity that it seems to have been one step too far for the anti-DOL rule lobby. What we mean is that the rule was so poorly received, and so poorly defended by the SEC, that it can be seen as responsible for the big surge in state-level fiduciary rules that are cropping up across the nation.
FINSUM: The interesting part about this is that the SEC’s new rule, which was supposed to be the sensible solution between demands for a fiduciary standard and industry practicality, has completely undermined its own interests. The rule seems to have been so one-sided and poorly marketed, that it has only emboldened fiduciary advocates and “left them no choice”.